When a debtor is out of money, he has no ability to repay. And when a creditor has borrowers who are out of money, the creditor has no income. No earnings. No power to make better loans.
September 17th, 2009 | Bill Jenkins | 3 comments | ContinuedAll Posts Tagged With: "citigroup"
Seems Everyone is Speculating on the Banks
“Public assistance enables the world’s largest 15 financial firms to return to the capitalization they had in September 2008,” the article continues. The largest of the largest, HSBC, is now judged to be worth $186 billion, according to the stock market.
September 2nd, 2009 | Bill Bonner | 2 comments | Continued
NAB Says Big Four Can’t Refinance Property Debt Without Government Help
Now we’ll find out if the 20% rally in global stocks was simply short covering and misplaced optimism, or the tentative first steps to a world-wide recovery. You know our thoughts on the matter. But the trouble with inflation is that it distorts choices and causes a man to believe that he can have more than is really possible.
April 21st, 2009 | Dan Denning | 12 comments | Continued
Citi Reports $4.69 Billion in Fixed Income Trading
So the banks have returned to profitability have they? That was the theme on the market last week. And if it were true, a recovery in bank balance sheets is just the sort of thing that might precede a recovery in the economy. But it probably isn’t true. Here’s why…
April 20th, 2009 | Dan Denning | 22 comments | Continued
Every Bear Market Has a Surprise
“The primary trend is down,” says he. In the end, he continues, no matter what Obama and Bernanke do, the primary trend will have its way. The bear market will continue until it “has fully expressed itself.”
April 7th, 2009 | Bill Bonner | 6 comments | Continued
The Geithner Plan
Investors appeared to absolutely love the U.S. Treasury Secretary’s plan to subsidise private sector purchases of toxic bank assets. The Dow closed up nearly 500 points, or 6.8%. The S&P closed up seven percent. The move gave stocks in New York their best two-week gain since 1938, according to Bloomberg.
March 24th, 2009 | Dan Denning | 8 comments | Continued
Dow Shows Signs of Life
Stocks in the United States have lost $11 trillion in value – more than cut in half – without a single major bounce. We expected one after Obama was elected. All we got was a 15% ricochet. Then, after he announced his major stimulus/bailout/boondoggle program…we thought, surely, stocks would rally then. Nope. Instead, globally, stocks are down 20% since Obama office.
March 12th, 2009 | Bill Bonner | 0 comments | Continued
Stocks Fall Another 250 Points. Only 2,100 More to Go.
The Dow ended yesterday’s trading at 7,114. Before this correction is over, it will trade below 5,000. That has been our prediction for the last 10 years. Maybe we were a little early. But we’re sticking with it. Besides, stocks have been a bad bet for the last 12 years. They’re now back to ‘97 levels…
February 25th, 2009 | Bill Bonner | 1 comment | Continued
Gold Demand Looks Bullish As Dust Settles
The late November rally in gold prices wasn’t quite as spectacular as mid-September’s gain, but it was still impressive. There was good follow-through too, though the momentum softened as bulls knocked on resistance near $850. The rally was a no-brainer. There is a strong line of support at $700, which was resistance during 2006 and the first half of 2007. Moreover, the market was, and is, oversold…
December 5th, 2008 | Ed Bugos | 1 comment | Continued
Citigroup, America’s Northern Rock
Citigroup (NYSE: C) continues to hemorrhage capital as fast as it can raise it. The good news last week is that America’s largest bank “only” lost US$5.1 billion in the first quarter, which was less than the vaunted analysts had expected. Less good, Citigroup wrote down US$16 billion in assets. Worse for the bank and those investors brave/oblivious enough to recapitalise it is that you could not pick a U.S. bank more exposed to the housing and retail busts unfolding.
April 21st, 2008 | Dan Denning | 0 comments | Continued